The Ministry of Planning and Investment responds questions relating to the implementation of Circular 05

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Customs officers of Quang Nam Customs Department check imported goods. Photo: T.H
Customs officers of Quang Nam Customs Department check imported goods. Photo: T.H

Review for correction

Regarding the issue that the Customs authorities still face many problems related to the identification of domestically produced goods as a basis for considering import duty exemption, the General Department of Vietnam Customs (Ministry of Finance) issued an official letter 9045/BTC-TCHQ requesting the Ministry of Planning and Investment to provide specific guidance and answers (Customs News mentioned at the publication No. 84 issued on October 21, 2022-PV).

After that, the Ministry of Planning and Investment sent an official dispatch to the Ministry of Finance to respond to this issue. The Ministry of Planning and Investment said that on October 7, 2022, the unit issued an official letter 7170/BKHDT-KTCN on requesting to provide commodity information to update the list of domestically available products.

According to Official Letter 7170/BKHĐT-KTCN, to continue to solve arising problems, and review newly manufactured goods appearing on the market; the Ministry of Planning and Investment has updated the list of domestically available machinery, equipment, spare parts, special-use vehicles, raw materials, supplies and semi-finished products. However, the Ministry emphasized that, for the goods in the last updates of the List (in 2018 and 2021), no agency or unit has registered to produce goods. So the Ministry of Planning and Investment will review and consider removing from the List of domestically available products.

Regarding the problems related to implementing several provisions of Circular 05, the Ministry of Planning and Investment said that they will conduct a review and study to adjust the Circular, amending and supplementing Circular 05. Furthermore, they expected the General Department of Vietnam Customs and Ministry of Finance to actively cooperate in the drafting process.

Regarding the problems related to the application of several specific products such as products, components and auto parts, the Ministry of Planning and Investment said that the problems of Circular 01/2018/TT -BTC have been amended and supplemented by the unit in Circular 05 and many documents to solve problems have been sent to Customs authority and Ministry of Finance.

The Ministry of Planning and Investment stressed that in case there still arises, the unit would bring the problem to discuss in the meeting of developing the Circular amending and supplementing Circular 05. It is expected that representatives of the Ministry of Finance, the Vietnam Automobile Manufacturers Association and domestic automobile manufacturing and assembling enterprises will participate in the meeting.

For goods with clear names and technical descriptions in Circular 05, the Ministry of Planning and Investment requested Customs authority to look up goods names and technical descriptions in the Circular to comply with regulations. As for items that are equipment directly serving oil and gas activities, the Ministry of Planning and Investment proposed to look up Appendix 2 and Appendix 6 of Circular 05 to determine.

Giving instructions for some regulations

Based on the Ministry of Planning and Investment responses, on November 14, 2022, the General Department of Vietnam Customs sent an official dispatch to a number of local Customs units to direct to apply the provisions of Article 3 of Circular 05 for some specific cases.

Accordingly, for items that are equipment directly serving oil and gas activities, the General Department of Vietnam Customs requested the following Customs Departments: Ba Ria- Vung Tau, Ha Nam Ninh, Quang Nam to look up Appendix 2 (List of domestically available machinery, equipment and technological lines) and Appendix 6 (List of supplies necessary for domestic oil and gas activities that can be produced) of Circular 05 for determination.

For goods that are necessary supplies for domestic oil and gas activities that can be produced, in Appendix 6 of Circular 05 stipulated that they are “necessary supplies for domestic oil and gas activities that can be produced”. According to the General Department of Vietnam Customs, the materials that need to be imported to serve oil and gas exploration activities directly need only be compared with Appendix 6 of Circular 05.

For other goods, according to the guidance of the Ministry of Planning and Investment, depending on the purpose of use, the field of production, the goods will have different requirements in terms of characteristics, standards and techniques. Therefore, the General Department of Vietnam Customs requested the units based on the purpose of use, the field of production of the goods to select, apply and compare with an appropriate appendix.

Regarding the inconsistency between goods names, HS codes, symbols, specifications, descriptions and technical descriptions of some goods, the General Department of Vietnam Customs requested units to look up goods names, descriptions and technical descriptions which are specified in Circular 05 to comply with regulations for goods with clear product names, descriptions and specifications.

As for barges and ships; valves; labor protection equipment; fixed platforms at sea, in Appendix 1 of Circular 05 stipulated that domestically available products include goods that have specifications lower than or equal to those specified in the technical description of the goods, the General Department of Customs suggested the units to study and implement.

For example, No. 79 in Appendix 1 of Circular 05 stipulates barges with a technical description: tonnage of 9,500 tons, a carrying capacity of 150 people. Therefore, it could be determined as domestically produced goods.

In addition, for valve products (No. 397-400, 402, 409, 410 Appendix 4 of Circular 05); labor protection equipment (No. 40, Appendix 6); fixed platforms at sea, the General Department of Vietnam Customs said that units need to look up the name, description, and technical characteristics in Circular 05 to determine.

The General Department of Vietnam Customs emphasized that according to the response of the Ministry of Planning and Investment related to document No. 1068/BKHDT-KHCN dated March 1, 2021, the Circular 01/2018/TT-BKHDT dated March 30, 2018 has expired, it is requested that the units do not continue to apply this document to determine whether imported goods are domestically available products or not.

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